Debt Consolidation Mortgages in Alberta
Bring Multiple Payments Into One Mortgage
When credit cards, loans and lines of credit are all competing for your monthly budget, it can be hard to get ahead. If you own a home and have enough equity, a refinance may let you roll those balances into your mortgage so you have one payment to manage.
I start by reviewing your full situation, so we can decide together whether consolidating makes sense for you.
How Debt Consolidation Works
A debt consolidation refinance replaces your current mortgage with a new, larger one. At closing, your lawyer uses the additional funds to pay out the debts included in the refinance, such as credit cards, personal loans, car loans or a second mortgage.
How It Can Help
-
One Payment: Replace several due dates and balances with one mortgage payment.
-
Lower Interest Rates: Mortgage rates are often lower than the rates on credit cards and other unsecured debt.
-
More Room in Your Budget: Lower required monthly payments can ease the pressure on your cash flow.
-
A Clearer Plan: You can see what you owe, what you pay and how the mortgage fits your goals.
What to Consider First
-
Long-Term Interest: Spreading short-term debt over a longer amortization can increase the total interest you pay. A lower payment does not by itself mean lower overall borrowing costs.
-
Penalties and Costs: A payout penalty, legal fees and possibly an appraisal or lender fees need to be part of the math.
-
Available Equity: The amount you can consolidate depends on your home’s value, your current balances and lender policy.
-
Staying on Track: Consolidation works best with a plan to avoid building the balances back up.
If Your Bank Has Said No
Credit challenges or past income disruptions do not automatically end the conversation. If a traditional lender is not the right fit, I can also look at Non-Traditional lending options. Those files may carry fees, which are always disclosed upfront, and approval depends on the lender.
A Recent Refinance Story
A past client recently referred homeowners whose second mortgage was approaching renewal, with payments they could not comfortably afford. Past income disruptions and credit challenges affected their options, and the timeline was tight.
I arranged a refinance through a Non-Traditional lender that brought their first mortgage, second mortgage and an outstanding debt into one mortgage. It has now closed and funded.
Their new payment is about $969 less per month than the payments they anticipated at renewal. That comparison is to those anticipated payments, not to what they were paying before renewal. The mortgage has a 30-year amortization, and every situation is different.
How the Process Works
-
1. Talk It Through: We review your debts, mortgage, budget and what you want to change.
-
2. Apply and Share Documents: You complete the application and provide the documents needed for your situation.
-
3. Review the Options: I run the numbers and walk you through the options that fit.
-
4. Lender Review: I submit your application to the lender. An appraisal and other conditions may be required.
-
5. Sign and Close: You sign with your lawyer, who pays out the included balances and registers the new mortgage.
Mortgage Tools & Calculators
Contact Me Today
Ready to simplify your payments?
Call or text me at 403-828-1838, or book a free call below. It never hurts to get another opinion.
